Exhibit 99.1
FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Robert W. Weaver
(479) 361-9111
P.A.M. TRANSPORTATION SERVICES, INC.
ANNOUNCES RESULTS FOR THE FOURTH QUARTER
ENDED DECEMBER 31, 2003
Tontitown, Arkansas, February 24, 2004.....P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $1,771,206 or diluted and basic
earnings per share of $.16 for the quarter ended December 31, 2003, and
$11,599,851 or diluted earnings per share of $1.02 ($1.03 basic) for the year
ended December 31, 2003. These results compare to net income of $3,995,940 or
diluted and basic earnings per share of $.35, and $16,593,007 or diluted
earnings per share of $1.55 ($1.56 basic), respectively, for the quarter and
year ended December 31, 2002.
Operating revenues of $74,235,660 were reported for the fourth quarter of 2003,
a 14.5% increase compared to $64,823,623 for the fourth quarter of 2002.
Operating revenues for the year ended December 31, 2003 were $293,546,854, an
11.2% increase compared to $264,011,924 for the year ended December 31, 2002. Of
these increases, $11,453,333 and $40,736,778, respectively, for the three- and
twelve-month periods ended December 31, 2003, were the result of revenues from
entities acquired earlier in the year.
Robert W. Weaver, President of the Company, commented, "Although our results for
the quarter ended December 31, 2003 were disappointing, they were not unexpected
for the most part due to the occurrences that developed in the third quarter.
Revenue growth of 14.5% was somewhat satisfying due to slightly more growth
being derived from the truck side rather than logistics. Positive signs are more
apparent when comparisons are made from third quarter 2003 results in that
revenue per total mile is up slightly reflecting the implementation of some rate
increases becoming effective in the fourth quarter. Rate negotiations continue
to be a work in process with more success in the non-dedicated side of the
business. We will continue to work with all aspects of the business to realize a
reasonable return for our services.
Revenue per truck showed a more significant increase due to a larger number of
manned trucks resulting from successful recruiting efforts. From the expense
side, we received the remainder of the 2003 new truck purchases which increased
our depreciation expense slightly.
Maintenance expense showed a significant increase due to the large number of
used trucks prepared to meet the trade terms specified by the manufacturers.
We also successfully re-entered the workers compensation self insured market as
of December 1, 2003. We have seen significant reductions in our current workers
compensation expense although we continue to incur high expenses from older
claims.
We believe our largest challenge is to return freight rates to acceptable levels
and have much emphasis on that area. At the same time we will continue to manage
our expenses and resources to the best interest of our stockholders."
P.A.M. Transportation Services, Inc. will be holding a live conference call with
certain financial analysts to discuss the earnings release, the results of
operations, and other matters on Wednesday, February 25, 2004 at 10:00 a.m. CST
(Please note that since the call will begin promptly at 10:00 a.m., you will
need to join at least ten minutes prior to that time.)
The public will be able to listen and participate in the conference call
telephonically by dialing (800) 915-4836. Please ask to be joined to the P.A.M.
Transportation Services Fourth Quarter and Year End Earnings Release Conference
call. An audio replay of the conference call will be posted on the Company's web
site after the meeting (www.pamt.com/investing/audio.html). In order to listen
to the replay, you will need an internet enabled PC capable of playing back MP3
audio files. The Company assumes no responsibility to update any information
posted on its Web site.
P.A.M. Transportation Services, Inc. is a leading truckload dry van carrier
transporting general commodities throughout the continental United States, as
well as in the Canadian provinces of Ontario and Quebec. The Company also
provides transportation services in Mexico through its gateways in Laredo and El
Paso, Texas under agreements with Mexican carriers.
Certain information included in this document contains or may contain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements may relate to
expected future financial and operating results or events, and are thus
prospective. Such forward-looking statements are subject to risks, uncertainties
and other factors which could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements.
Potential risks and uncertainties include, but are not limited to, excess
capacity in the trucking industry; surplus inventories; recessionary economic
cycles and downturns in customers' business cycles; increases or rapid
fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and
registration fees; the resale value of the Company's used equipment and the
price of new equipment; increases in compensation for and difficulty in
attracting and retaining qualified drivers and owner-operators; increases in
insurance premiums and deductible amounts relating to accident, cargo, workers'
compensation, health, and other claims; unanticipated increases in the number or
amount of claims for which the Company is self insured; inability of the Company
to continue to secure acceptable financing arrangements; seasonal factors such
as harsh weather conditions that increase operating costs; competition from
trucking, rail, and intermodal competitors including reductions in rates
resulting from competitive bidding; the ability to identify acceptable
acquisition candidates, consummate acquisitions, and integrate acquired
operations; a significant reduction in or termination of the Company's trucking
service by a key customer; and other factors, including risk factors, referred
to from time to time in filings made by the Company with the Securities and
Exchange Commission. The Company undertakes no obligation to update or clarify
forward-looking statements, whether as a result of new information, future
events or otherwise.
P.A.M. Transportation Services, Inc.
and Subsidiaries
Key Financial and Operating Statistics
(unaudited)
Quarter ended Year ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Operating revenues $74,235,660 $64,823,623 $293,546,854 $264,011,924
----------- ----------- ------------ ------------
Operating expenses:
Salaries, wages and benefits 29,670,165 27,765,769 119,037,826 115,431,917
Operating supplies 14,591,376 12,644,176 55,749,688 51,160,998
Rent/purchased transportation 9,419,259 2,195,649 35,286,502 9,780,133
Depreciation/amortization 7,407,085 7,039,036 26,601,345 24,715,074
Operating taxes and licenses 3,819,610 3,266,448 14,709,700 13,466,645
Insurance and claims 3,407,748 3,281,478 13,627,583 12,786,406
Communications and utilities 679,464 580,196 2,539,989 2,283,738
Other 1,374,365 1,092,364 4,755,388 4,619,561
Loss on disposition of equipment 326,426 31,818 368,238 127,382
----------- ----------- ------------ ------------
Total operating expenses 70,695,498 57,896,934 272,676,259 234,371,854
Operating income 3,540,162 6,926,689 20,870,595 29,640,070
Other income/(expense):
Interest expense (331,136) (266,585) (1,390,704) (1,984,854)
----------- ----------- ------------ ------------
Total other income/(expense) (331,136) (266,585) (1,390,704) (1,984,854)
----------- ----------- ------------ ------------
Income before income taxes 3,209,026 6,660,104 19,479,891 27,655,216
Provision for income taxes 1,437,820 2,664,164 7,880,040 11,062,209
----------- ----------- ------------ ------------
Net income $ 1,771,206 $ 3,995,940 $ 11,599,851 $ 16,593,007
=========== =========== ============ ============
Diluted earnings per share $0.16 $0.35 $1.02 $1.55
=========== =========== ============ ============
Average shares o/s - Diluted 11,323,259 11,307,750 11,325,544 10,714,677
=========== =========== ============ ============
Quarter ended Year ended
December 31, December 31,
Truckload Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total miles 59,665,602 56,625,404 235,482,479 228,988,797
Empty miles factor 4.64% 3.66% 4.59% 4.17%
Revenue per total mile $1.08 $1.10 $1.08 $1.11
Total loads 79,958 74,378 312,475 303,142
Revenue per truck per work day $595 $611 $567 $596
Average company trucks 1,789 1,636 1,723 1,605
Average owner operator trucks 104 129 118 137
Quarter ended Year ended
December 31, December 31,
Logistics Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total revenue $9,992,071 $ 2,301,186 $38,955,016 $10,472,054
Operating income $395,945 $(122,935) $1,838,600 $(43,440)